January 29, 2024

Types and regimes of simplified foreign trade operations in the Republic of Uzbekistan.

  1. Foreign trade transactions.

In Uzbekistan, foreign trade contracts include export contracts, import contracts, barter contracts, centralized export contracts, centralized import contracts, import exchange (fair) contracts, export exchange (fair) contracts, export consignment contracts, export contracts on the territory of the republic, processing contracts (on the territory of the republic), processing contract (outside the republic), export contracts on the basis of leasing, import contracts on the basis of leasing, import contract, export contract, procurement contract, implementation contract, advertising agreement[1].

  1. Main types of contracts.

Import contract – a contract concluded between importer and non-resident of the Republic of Uzbekistan for the import of goods (works, services);

Export contract – an economic contract concluded between a resident and a non-resident of the Republic of Uzbekistan for the export of goods (works, services), as well as contracts equated to export contracts in accordance with the legislation (except for barter contracts);

Export exchange (fair) contract – a contract concluded between an exporter and a non-resident of the Republic of Uzbekistan for the export of goods (works, services) based on the results of exchange (fair) trading;

Import contract – a contract between a resident and a non-resident of the Republic of Uzbekistan, providing for the purchase of goods for quarters under the customs regimes of the customs storage, free storage, free customs zone, processing on the customs territory and the subsequent sale of goods to another non-resident on the basis of an export contract;

Export contract – a contract between a resident and a non-resident of the Republic of Uzbekistan providing for placement of goods purchased under the import contract under the customs regime of re-export (including export of goods subjected to sufficient processing) for the purpose of their implementation;

  1. Accounting for foreign economic transactions in the electronic database of the tax authority (UEISFTO).

Uzbekistan has a system of registration of foreign economic transactions in the electronic system of UEISFTO. It covers export and import transactions but excludes transactions outside the territory of Uzbekistan, including transactions processed in the customs territory. Any export-import contract is subject to registration in the Unified Electronic Information System for Foreign Trade Operations (UEISFTO). The database is accessible to the servicing bank, tax, and customs authorities. Without registration of the contract in the UEISFTO, the Uzbek counterparty will not be able to fulfill its obligations under the contract, in particular, to pay and carry out customs clearance of the goods.

Rules for recording foreign economic transactions in the UEISFTO:

[…] Economic entities must enter into the UEISFTO:

– information on export and import of work performed or services rendered – within 1 day from the day of drawing up the act;

– information on documents confirming receipt and delivery of goods under procurement contracts and sales contracts – within 1 day from the day of their conclusion.

  1. Types of foreign trade operations stipulated by the legislation of Uzbekistan[2].

– foreign trade contracts – export contracts, purchase contracts, import contracts, implementation contracts specified in this paragraph of the Regulation;

– purchase contract – a contract between a resident and a non-resident of the Republic of Uzbekistan for the purchase of goods without their importation into the customs territory or in case of transit;

– implementation contract – a contract between a resident and a non-resident of the Republic of Uzbekistan providing for the sale of goods purchased under a purchase contract to another non-resident.

  1. Simplified categories of foreign trade transactions.

Business entities are allowed to export and import goods (works and services) on the basis of invoices, without concluding export and import contracts, as well as to make mutual settlements with foreign partners through commercial banks on the basis of these invoices, if the transaction amount does not exceed USD 5,000 per invoice, without entering information into the UEISFTO[3].

From 1 August 2021, transactions are allowed:

– on processing even if there is no foreign customer in the requirements of the customs regime;

– new types of foreign trade contracts for export, import, sale, and purchase, which allow a business entity to purchase raw materials from abroad and sell them to any foreign partner after their processing on the territory of the country without paying customs duties (with monitoring of the linkage of the import contract to the export contract, as well as the linkage of the purchase contract to the sale contract – the number of funds received under the implementation contract should not be less than the number of funds paid under the purchase contract);

– for domestic exporting organizations to purchase products abroad and sell them directly to third countries without importing (see paragraph 5 below).

  1. Deadlines applicable to import and export of goods and payment under foreign trade transactions.

– The time limit for importation of goods under the contract for import and registration under the customs regimes of customs storage, free storage, free customs zone, processing on the customs territory, as well as the return of money paid for them may not exceed 180 days from the date of payment under the contracts;

– establish that the period of receipt of proceeds or re-importation of goods under an export contract shall not exceed 180 days from the date of registration of goods under the customs regime “re-export” (including export);

– return of funds paid under a purchase contract or receipt of funds under an implementation contract shall not exceed 180 days from the date of payment under the purchase contract.

The period of registration of goods in the export (re-export) regime, performance of works or providing services in the export regime, for which payment has been made by foreign partners, shall not exceed 365 days from the date of receipt of funds to the exporter’s (re-exporter’s) account.

The term of transfer of monetary funds for imported goods (including when imported under the customs regimes: customs storage, free storage, free customs zone, processing on the customs territory), work performed and services provided shall not exceed 365 days from the moment of (a) registration of the customs regime of goods imported to the Republic of Uzbekistan by foreign partners under the following regimes: release into free circulation, customs storage, free storage, free customs zone, processing in the customs territory in accordance with the export contract), and (b) signing acts of work performed or services provided.

  1. Trade operations outside the Republic of Uzbekistan (not on a cross-border basis) and outside its customs territory.

The existing economic policy generally restricts the economic activities of Uzbek residents outside the territory of Uzbekistan.

The limited list of allowed transactions (export and import) implies mandatory delivery of goods, works, and services to the territory of Uzbekistan – in case of import, and also mandatory export, exclusively from the territory of Uzbekistan. Trade transactions of residents outside the territory of Uzbekistan may be made if such residents have the status of exporters: domestic exporting organizations are allowed to purchase products abroad and sell them directly to third countries without importing only[4].

  1. Time limits.

The time limit for importation into the Republic and registration of goods under the customs regime “release for free circulation (import)”, as well as for the performance of work or providing services or refund of money paid for them shall not exceed 180 days from the date of payment under import contracts. This term does not apply to trade operations of residents carried out outside the Republic of Uzbekistan (not on a trans-border basis) and outside its customs territory.

The State Customs Committee of the Republic of Uzbekistan constantly monitors the determination of the customs value of goods, except for goods, works (services) acquired and disposed of within the framework of foreign trade activities of residents outside the Republic of Uzbekistan (not on a trans-boundary basis) and outside its customs territory. 

  1. Re-export.

Re-exporters – residents of the Republic of Uzbekistan – legal entities and individual entrepreneurs[5], who place the goods, previously purchased on the basis of the import contract under the customs regime of re-export with the purpose of their implementation[6].

The customs regime of re-export is the regime under which the goods previously imported to the customs territory of Uzbekistan or the product of the processing of goods placed under the customs regime of processing of goods on the customs territory is exported from it without payment of customs duties and taxes, without application of economic policy measures to the goods, and in some cases – with a refund of customs duties and taxes paid when importing them.

To place goods under the customs regime of re-export, the customs cargo declaration and shipping documents shall be submitted to the customs authority.

Goods placed under the re-export regime shall be exempt from customs duties and taxes[7].

When re-exporting goods previously placed under the customs regime of release for free circulation (import), the refund of paid customs duties and taxes shall be made with respect to the actually re-exported part of the goods.

  1. Other simplified regimes.

10.1 Customs regime of processing on the customs territory[8].

The customs regime of processing on the customs territory is the regime under which goods are imported to the customs territory with conditional exemption from customs duties and taxes for processing and export in the form of processed products.

A contract under this regime is concluded between an exporter and a non-resident of the Republic of Uzbekistan, providing for the processing of goods on the customs territory of Uzbekistan and their export as processed products outside the customs territory of Uzbekistan.

Economic policy measures are not applied when importing goods for the purpose of processing in the customs territory.

Operations on the processing of goods on the customs territory are:

– direct processing or processing of imported goods with change of their original properties and individual indicators, but with preservation of such characteristics of the goods in the processed product that allow its identification;

– manufacturing of other goods using the imported goods, including assembly, assembly or disassembly;

– repair of goods, including their restoration and replacement of constituent parts;

– the use as raw materials of other goods that contribute to or facilitate the production of processed products, where these goods are wholly or partly consumed in the processing. This operation shall be carried out simultaneously with one of the other operations specified in this Part.

The exported processed product, residues, and waste shall be exempt from customs duties and taxes, as well as from the application of economic policy measures.

As of 1 May 2022, a simplified procedure for the application of the customs regime “processing on the customs territory” was introduced, according to which:

  1. a) packing, packaging (including repackaging), sorting, cleaning of goods, their fitting with other goods, and modernization of equipment are considered as processing operations on the customs territory;
  2. b) when placing goods under the customs regime “processing on the customs territory”, mandatory confirmation of compliance of goods with the requirements of normative acts in the field of technical regulation and submission of sanitary and epidemiological conclusions are not required.

[1] Regulation on the procedure of monitoring and control over foreign trade operations (Annex No 1 to the Resolution of the KM RUz No 283 dated 14.05.2020).

[2] Regulation on the procedure of monitoring and control over foreign trade operations (Annex No 1 to the Decree of the KM RUz No 283 dated 14.05.2020).

[3] Decree of the President of the Republic of Uzbekistan “On measures for further liberalization of trade and development of competition in commodity markets” No UP-5564 dated 30.10.2018.

[4] Resolution of the Cabinet of Ministers of the Republic of Uzbekistan “On additional measures to further simplify customs administration and procedures” No 429 dated 08.07.2021.

[5] Individuals carrying out entrepreneurial activities without forming a legal entity.

[6] Regulation on the procedure of monitoring and control over foreign trade operations (Annex No 1 to the Decree of the KM RUz No 283 dated 14.05.2020).

[7] Article 35 of the Customs Code of the Republic of Uzbekistan.

[8] Decree of the President of the Republic of Uzbekistan “On additional measures to simplify the application of the customs regime “processing on the customs territory” N UP-115 dated 25.04.2022.